GST Collection / The government received good news, Rs 1.89 lakh crore came into the treasury

GST Collection: The government's Finance Ministry on Wednesday reported that Goods and Services Tax (GST) collections in September 2025 stood at ₹1.89 lakh crore, a 9.2% increase compared to ₹1.73 lakh crore in September last year. This is the second consecutive month in which GST collections have crossed the ₹1.85 lakh crore mark. In August 2025, it was ₹1.86 lakh crore, a 6.5% increase on a year-on-year basis. This strong figure indicates a pick-up in the country's economic activity and an increase in consumer spending.

Record ₹12.1 lakh crore collection in six months

Total GST collections in the first six months (April to September) of FY 2025 reached ₹12.1 lakh crore, a 9.8% increase compared to the same period last year. This amount represents nearly half of the full-year GST collections of FY 2024. Net GST revenue, which includes tax refunds and other deductions, stood at ₹10.4 lakh crore, an increase of 8.8% over the previous year. This is a positive sign for the government, as it increases resources for public spending and infrastructure development.

IGST Sets New Record

Integrated Goods and Services Tax (IGST) collections stood at ₹1,01,883 crore in September 2025, surpassing the previous record of ₹1,01,075 crore set in January 2025. This is the first time IGST collections have crossed ₹1 lakh crore. This figure reflects a significant increase in trade and exchange of goods within the country, which is a symbol of the dynamism of the economy.

Slight Decline in Cess Collection

However, cess collections have seen a slight decline this year. Between April and September 2025, cess collections declined from ₹13,451 crore (April) to ₹11,652 crore (September). This decline was primarily due to a reduction in cess on certain goods and services. However, its impact on overall GST collections was limited.

Festive Season Boosts Revenue

GST collections during the August and September 2025 festive season totaled ₹3.8 lakh crore, a 7.8% increase over the same period last year. Increased shopping and consumer demand in markets during the festivals contributed significantly to this revenue increase. This is a strong sign of economic stability and consumer confidence.

Revolutionary Changes to GST Slabs

The GST Council implemented major reforms to the tax slabs in early September 2025. While there were previously four tax slabs (5%, 12%, 18%, and 28%), these have now been simplified to two main slabs (5% and 18%). Additionally, a new 40% tax slab has been implemented on sin and luxury goods. These changes, effective September 22nd, aim to simplify the tax system, ease compliance for businesses, and provide relief to consumers. This reform could prove particularly beneficial for small and medium-sized businesses.